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According to beauty market research conducted by The NPD Group, U.S. prestige beauty sales rose a welcomed 4% to $8.4 billion in 2010.

Prestige skin care proved yet again to be the strongest performer among the three beauty categories. Skin care not only gained back what it had lost during the recession, but the category also surpassed pre-recession levels, according to the Port Washington, NY-based firm. Launches, which grew 30%, were a major contributor to the increases, as well as anti-aging products, which grew 12%. Premium face products—those priced $75 and up—experienced a 7% dollar increase from 2009.

It was the first time in two years that prestige makeup experienced category growth, according to NPD. Fueled by the double-digit growth of offerings from primers, anti-aging face products and rich color options in lip and nail, five of the six segments within makeup posted growth. Three segments either met or outpaced category growth—face (+3%), lip (+3%) and nail (+39%). Gift sets declined in dollars, but had a unit growth of 3%, the company said.

And there was further good news in the prestige fragrance sector as the segment posted its first annual dollar sales gain since 2006.

More info: www.npdgroup.com

Fragrance & Flavor Demand To Rise Through 2014
The U.S. market for flavors and fragrances is forecast to rise 3% annually to $5.5 billion in 2014, according to Freedonia, which recently released details of its latest Flavors & Fragrances report. Demand will increase due to an improving economic outlook, as well as continued expansion in the food, beverage, and cosmetic and toiletry sectors.

Advances will be fueled by consumer interest in more complex, exotic and authentic flavors and fragrances, as well as the increasing utilization of these products as marketing tools and product differentiators, according to the Cleveland-based market research company. More rapid gains are expected for the cosmetic and toiletry market, and environmental fragrance goods markets.Among the major product segments, essential oils and natural extracts are projected to achieve the most rapid gains through 2014.

According to Freedonia, demand for fragrances used in skin care products is projected to climb at an above-average pace of 4.2% a year to $368 million in 2014, boosted by consumer interest in more natural ingredients. As the large Baby Boomer population approaches retirement age, advances will benefit from heightened demand for high-value skin care products designed specifically for mature skin. In addition to anti-aging products, the antibacterial skin care segment will also promote growth, particularly as consumers become increasingly aware of the presence of pathogens on everyday surfaces and the hazards of spreading harmful bacteria, Freedonia reported.

Consumer interest in unscented and fragrance-free products, will work to restrict overall gains. However, fragrances will continue to be employed in the vast majority of skin care products, Freedonia said. In addition, even unscented and fragrance-free products typically contain fragrances at lower loadings than are conventionally used during formulation.

Although consumer preferences are trending toward natural ingredients and nature-inspired fragrances, the skin care product segment will continue to be dominated by synthetic aroma chemicals. Synthetic formulations offer a pricing advantage over natural ingredients. In addition, some essential oils can be irritating to the skin. Fragrances in skin care products generally follow the lead of perfumes and colognes, with comfort scents, aromatherapy fragrances (e.g., lavender, jasmine, peppermint, etc.) and marine-related scents expected to post increases.

Demand for fragrances in personal soaps and body washes is forecast to increase 2.9% a year to $334 million in 2014, restricted by market maturity in the large bar soap segment.